Enterprise Resource Planning and Project Delivery in Commercial Banks in Kenya

Abstract

In response to the changing business environment and increasing competition, commercial banks in Kenya have invested in projects like establishment of more branches, technological innovations and renovation of branches. To ensure successful delivery of projects, commercial banks have adopted enterprise0resource0planning. However, despite the adoption of enterprise0resource0planning in Kenyan commercial banks, delivery of projects is still wanting. Therefore, the study sought to examine the effect of enterprise resource planning on project delivery in commercial banks in Kenya. Specifically, the study sought to identify the enterprise resource planning modules adopted in in commercial banks in Kenya; and determine how enterprise resource planning affects project delivery in commercial banks in Kenya. The study adopted an explanatory research design. The target population was 39 functioning commercial0banks0in0Kenya. The respondents were heads of the information and communication technology departments. The research0used a census0approach0and hence included all the 39 Kenyan commercial banks. Both primary0and0secondary data was collected. The study used data extraction tool to gather secondary data from reports of Bank Supervision by Central Bank of Kenya and from annual reports of individual banks. Primary data was collected by use of semi-structured questionnaires. Qualitative data from open-ended questions was analyzed0by use0of thematic analysis. Descriptive0and0inferential0statistics were used in analyzing quantitative0data with the help of Statistical0Package for Social0Sciences (SPSS version 25) statistical software. Descriptive0statistics included frequency distribution, percentages, means, and standard deviations. Inferential0statistics included paired sample t-test. The study found that most of the commercial banks in Kenya had0adopted0quality management, financial management, material management and human resource modules. In addition, the study found that the adoption of the ERP system has a statistically significant effect on project delivery in commercial banks in Kenya. Specifically, the study found that material management module, quality management module and financial management module significantly affects project delivery in commercial banks in Kenya. However, the human resource module was found to have no statistically significant effect on project delivery in commercial banks in Kenya. The study recommends that commercial banks should regularly review the module's effectiveness, gather feedback from users, and make necessary adjustments to meet evolving project and procurement needs. In addition, commercial banks should also use of quality management module for effective risk management to identify and assess quality-related risks and establish mitigation strategies. This proactive approach will help in reducing the likelihood of project delays and failures. Also, commercial banks should also prioritize the implementation and comprehensive utilization of the financial management module within their ERP systems.